An updated version of a paper first submitted by Trade Press Services, February 2008
© Don J. Wessels.
Published here May 2008.

Introduction | What is Wrong With This Picture? | Project Prioritizing
The Project Ranking Tool | Resource Allocation | Where Has Execution Gone Wrong?
What is Missing in the Total Product Cycle? | Whatever Happened to the Business Case? 
Close the Loop

What is Wrong With This Picture?

PMI's Standard for Portfolio Management[2] defines a portfolio as:

"A collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet the strategic business objectives. The projects or programs of a portfolio may not necessarily be interdependent or directly related."

Further, it defines portfolio management as:

"The centralized management of one or more portfolios, which includes identifying, prioritizing, authoring, managing and controlling projects, programs and other related work, to achieve specific strategic business objectives."

Notice two key phrases in these definitions: "to meet the strategic business objectives" and "to achieve specific strategic business objectives."

So shouldn't strategic projects take priority? Shouldn't the portfolio also be guided by strategic alignment in the selection of business unit projects and reactive projects? If so, should pet projects be in the portfolio at all if they are not strategically aligned?

The real key to the project selection and prioritization is in maximizing business value with a robust business case

Introduction  Introduction

2. The Standard for Portfolio Standard, ISBN: 1-930699-90-5, Published by: Project Management Institute; Copyright 2006.
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